Hedging of exotic options in Hawkes jump-diffusion models by Malliavin calculus

Fuente: arXiv
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Main Authors: Ahmadi, Ayub, Tahmasebi, Mahdieh
Format: Preprint
Published: 2025
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author Ahmadi, Ayub
Tahmasebi, Mahdieh
author_facet Ahmadi, Ayub
Tahmasebi, Mahdieh
contents In financial mathematics, the calculation of the Greeks, especially the delta, is emphasized due to its role in risk management. In this article, we employ Malliavin calculus to determine the delta of European and Asian options, where the underlying asset evolves according to a Hawkes jump-diffusion process. A central feature is that the Hawkes jump intensity is stochastic, which substantially affects the delta representation.
format Preprint
id arxiv_https___arxiv_org_abs_2510_05689
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Hedging of exotic options in Hawkes jump-diffusion models by Malliavin calculus
Ahmadi, Ayub
Tahmasebi, Mahdieh
Probability
60H07, 91G20, 65c30
In financial mathematics, the calculation of the Greeks, especially the delta, is emphasized due to its role in risk management. In this article, we employ Malliavin calculus to determine the delta of European and Asian options, where the underlying asset evolves according to a Hawkes jump-diffusion process. A central feature is that the Hawkes jump intensity is stochastic, which substantially affects the delta representation.
title Hedging of exotic options in Hawkes jump-diffusion models by Malliavin calculus
topic Probability
60H07, 91G20, 65c30
url https://arxiv.org/abs/2510.05689